It is so easy to get funding from Malaysia government, if you’re ambitious enough to become a millionaire. What you need to do is to prepare a fairy-tale proposal with a colorful promise that the local have the talents (don’t tell anything about importing foreign expertise, not that the government doesn’t realize it) to deliver world-class solution. The proposal has to be unique and you have to get a bumiputra participant in your overall plan. Voila, tens of millions would be deposited into your account. What would happen if things get screwed-up? Nothing, you read it right, in Malaysia nobody has ever been charged for being innovative in getting funding from Malaysia Debt Ventures (MDV) but didn’t manage to deliver it.

Such is the story (or rather “crisis” as reported by Edge) about online games publisher e-Games Global Sdn Bhd. It was reported that MDV had so far injected RM 61 million since four years ago but e-Games did not even succeed in its plan to set up the planned first English online multi-game portal. Formerly known as Terra ICT Sdn Bhd, e-Games is a joint-venture between Japanese technology-and-Internet-based solutions provider Terra Corp and Main Board-listed turnkey contractor Bintai Kinden Corp Bhd.

Terra Corp and Bintai Kinden hold 30% and 21% stake in e-Games, respectively. The remaining stake is collectively held by e-Games adviser and Terengganu exco member Datuk Abdul Latiff Awang and other individuals.

Sources alleged that following the disbursement by MDV to e-Games in late 2003, RM41 million was taken out of the company within two months (isn’t this a blatant and obvious case of criminal breach of trust or contract?). The money went to its major stakeholder, Terra Corp, in return for a binding contract for 60 game titles, while the remainder was then used to set up the online game portal.

Subsequently, e-Games has lost the publishing right of its money-spinning online game “RAN Online” to another online game publisher Gonzo Rosso Malaysia (Gonzo Rosso is the local arm of Japanese digital content powerhouse Gonzo Digimation Holdings KK). Interestingly the CEO of Gonzo Rosso is CS Chin who was the former COO (chief operating officer) of e-Games. Besides CS Chin, three other ex-senior management staff of e-Games had been alleged to commit cyber crime.

If the RM 61 million is not recoverable, will e-Games need to repay MDV for the loan? Even though MDV has a loan portfolio of RM1.6 billion, the money was actually borrowed from the Japan Bank of International Cooperation (JBIC). Will the country witness another untiring round of public money going into dustbin? You bet. So, what are you waiting for? Draft a creative proposal and put in all the required spices and you’re on your way to become another millionaire. It doesn’t matter if the proposed solution makes sense, you can even propose to make a better Challenger rocket traveling to Mars within two-years.

Comments

That is true even on smaller scales. A Bumi borrowed money from the government, rented my premises for opening a restaurant, then promptly didn’t pay rent and let the restaurant rot. She only had to use the tenancy agreement to prove that she tried to open a restaurant. Who knows how much she got away with that she didn’t have to repay.

This whole thing is widespread, from RM60 million “businesses” to RM50,000 small business loans. Predictably, I haven’t heard of many non-Malays who got these loans that you don’t have to pay back.